Nomura Holdings, Inc. · TSE:8604

Nomura — Q4 FY2017/18 Earnings Presentation

37 slides from Nomura's earnings presentation, May 11, 2018

  1. Slide 1: Form 6-K Nomura Holdings, Inc.

    Table of Contents FORM 6-K U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 Commission File Number: 1-15270 For the month of May 2018 NOMURA HOLDINGS, INC. (Translation of registra

  2. Slide 2: Information furnished on this form

    Table of Contents Information furnished on this form: EXHIBIT Exhibit Number 1. Consolidated Results of Operations (US GAAP), Fourth quarter and fiscal year ended March 2018

  3. Slide 3: Signatures

    Table of Contents SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. NOMURA HOLDINGS, INC. Date: May 11, 2018 By: /s/ Hajime Ikeda Hajime Ikeda Senior Man

  4. Slide 4: Consolidated Results of Operations, Fourth quarter, year ended March 2018

    Table of Contents Connecting Markets East & West © Nomura (US GAAP) April 2018 Consolidated Results of Operations Fourth quarter, year ended March 2018 Nomura Holdings, Inc.

  5. Slide 5: Outline

    Table of Contents Outline 15) 22) Financial Segment Presentation “Other” Supplement (p. Executive 23)Consolidated Retail summary related balance (p.data 2-3)(p. sheet Overview 24-27) (p. 17)of Asset Value results Management at (p. risk4)(p.Business 18)related Consolidated segment data (p.results 28-

  6. Slide 6: Executive summary (1)

    Table of Contents Executive net income and subdued program (1) EPS Net income market (rhs) income taxes client to65.65 summary declined raise factors ofactivity attributable Y269.9bn 400.0 capital pushed from FY2017/18 61.88 led efficiency last (-3%YoY) assets toto60.03 challenging Nomura yearunder

  7. Slide 7: Executive summary (2)

    Table of Contents Executive :transactions, sentiment was Calculated before 66.2 3.2% lower 61.1 income (FY17/18 62.6 to summary than using fall; and taxes 63.0 last annualized contributions 3Q:12.4%) sluggish quarter FY2016/17 FY2017/18 Net income sales Wholesale net - EPS3 (approx. of FY2017/18 inc

  8. Slide 8: Overview of consolidated results: financial highlights

    Table of Contents Overview 328.2 using annualized +2%ofNet results income1 netHighlights income 22.7attributable -74% (billions -63%of to219.3 yen, Nomura except -8%Holdings EPS2 EPSY6.56 and shareholders ROE) -74%FY2017/18 -61%forY61.88 eachFY2017/18 period. -6% ROE3QoQ 3.2% YoY7.9% YoY1.4Q Net Ful

  9. Slide 9: Business segment results

    Table of Contents Business +24% -17% operating 103.1 715.3 segment purposes +38% -3% Subtotal results (loss) -5.0 - before -Net 336.9 1.9revenue -71% Asset +7%Income Management +13% and income 1,255.6 before(loss) 11.3 income +4%-46% before Other taxes +30% income *46.9 46.2 66.2 -61% -48% taxes +56

  10. Slide 10: Retail

    Table of Contents Retail 76.2 2Q before climbed trusts unchanged medium 3Q80.0 particularly Net income 4Q higher to76.7 revenue 1. long (subscriptions3: Capital taxes: -4% Fourth term sluggish and -1% Y103.1bn Nomura Bonds: quarter income Income inY72.3bn; Y582.2bn; March Securities Net before (+38%

  11. Slide 11: Retail: inflows and recurring revenue

    Table of Contents Retail: FY2016/17 10.3 inflows1 (accumulated)3 172.8 NISA.0.0 Investment 4. Successful FY2016/17 Y114.0bn Cash FY2017/18 and 1.64m trust initiatives securities -Y62.4bn FY2017/18 net 1.61m 4Qinflows 1Qto inflows –- 2Q Net grow Discretionary Mar 58.8 3Q inflows assets June minus 4Q8

  12. Slide 12: Asset Management

    Table of Contents Asset 15.7 32.1 quarter lower Y87.8bn ongoing and Asset Japan 16.0 34.3 Management than Net inflows –34.1 +2% Management, investment Nomura last revenue: 29.5 quarter +9% intoNet Japan FY2016/17 expenses Y27.3bn US advisory Investment revenue and high Value Wealth yield (-25% Incom

  13. Slide 13: Asset Management: ETF and investment trust inflows

    Table of Contents Asset Management FY2017/18 FY2016/17 almost management 40% FY2017/18 4Q (approx. (net). 1Q 2.2Q Growth Inflows Source: 3Q 4Q4Q 1Q ininto The Flow ETF 2QETFs Investment 3Q AuM of 4Q funds Y4.4trn) driven Nomura inTrusts investment by over Asset ongoing Association, pastManagement ye

  14. Slide 14: Wholesale

    Table of Contents Wholesale 102.0 Net revenue: expenses QoQ; improved increased, Markets; revenue +57% 27.7 Y715.3bn one-off increased significantly while Net 25.1 YoY) by revenue region 22.9 Fixed charge1 Revenues YoY (-3% 25.5 (billions Income partly and due YoY) booked 28.5 income mainly up due +

  15. Slide 15: Wholesale: Global Markets

    Table of Contents : Global (+31% QoQ Quarter volatility booked performance improvement QoQ; higher -5% Markets Fourth QoQ was +27% revenues quarter Net robust YoY inYoY) revenue Rates FI AEJ: Americas: and Both EQ and Derivatives Emerging Americas (billions Fixed Credit In Income Fixed of Equities M

  16. Slide 16: Wholesale: Investment Banking

    Table of Contents Wholesale: Y28.5bn decline league estimate since PO TenCate 26.7bn3) USD year tables2 insale Cross-border (+12% denominated (€1.1bn) Japan ended Investment of- MassMutual International: on QoQ; March JERA thedeals +3% bond back Banking 2010 integration YoY) Gross DCM of Advanced Ma

  17. Slide 17: Non-interest expenses

    Table of Contents Non-interest 500 24.5 Other Continued booked expenses Commissions 23.8 209.3 indecreased 25.2 Americas focus 248.9 expenses 25.3 onand 51.1 25.6 due pay forFull floor 53.3 legacy to for 1.4% lower year performance 100 48.9 Information transactions Quarter brokerage depreciation 53.

  18. Slide 18: Robust financial position

    Table of Contents Robust (billions assets2 capital agreements exposureratio ratio3 Y0.4trn financial (sum to 19.2% RWA resell of Y0.5trn ofposition on-balance yen) 18.2% (Basel andLevel Y0.5trn securities Balance 17.6% 3) (lhs) sheet 3 Assets (net) CET sheet CET1 borrowed, exposures Liquidity 1Net r

  19. Slide 19: Funding and liquidity

    Table of Contents –Funding certain Approx. bonds, derivatives, and Other segregated etc. period assets 80% andmarket etc. liquidity of Balance are client Trading unsecured funded maturity funds. Balance sheet liabilities byfunding Japan 15 (As equity sheet 3.ofExcludes 5.8 and March and isstructure

  20. Slide 20: Financial Supplement

    Table of Contents Financial Supplement

  21. Slide 21: Consolidated balance sheet

    Table of Contents Consolidated deposits 7,383 40,591 been Receivables made 187 -2,261 3,708 Total byfrom balance revisiting Total 3,805 trading other liabilities 96 sheet1 than assets2 Total the definition customers (billions loans and andequity private and of ofby receivables yen) 42,852 customers

  22. Slide 22: Value at risk

    Table of Contents END-1.1 FY2017/18 -1.3 Value VaRFY2016/17 at 3.3 risk6.4 Definition 3.3FY2017/18 3.5 4.3 From 5.2April Mar 6.4 18 Mar 1, 2017, Mar to JunMarch Sep Dec 31, Mar 2018Equity (billions 0.7of1.2 yen) 0.799% 0.9 0.8 confidence 1.2 1.2 Interest level Maximum: rate 2.7 3.19.0 2.71-day 2.5 3

  23. Slide 23: Consolidated financial highlights

    Table of Contents Consolidated before Diluted-Net FY2016/17 813.57 income 835.72 FY2017/18 income financial taxes 810.31 attributable 322.8 1.highlights 4Q Quarterly 328.2 1Q 2QtoNet Full 3Q NHI ROEincome year 4Q65.65 is349.1 calculated (billions attributable 61.88 360.8 of shareholders using 351.5

  24. Slide 24: Consolidated results

    Table of Contents Consolidated management 148.2 1,497.0 Gain 349.1 (loss) and income 360.8 portfolio on 351.5 investments Full year 406.6 service Quarter 378.0 infees equity 216.5 Non-interest (billions securities 245.6 of yen) 56.6 expenses 7.7 FY2016/17 58.3 2.7 -2.8 61.2 1,080.4 0.1 63.8 FY2017/1

  25. Slide 25: Main revenue items

    Table of Contents Main44.1 Commissions 16.9 43.9 16.3 revenue Administration 6.6 3.6 for items 4.4 distribution Full 4.9 3.4 year feesFees of Quarter 50.2 investment from 57.9 FY2016/17 M&A 13.1trusts 14.0 / Financial 14.3 75.1 FY2017/18 15.5 85.7 advisory 14.1 22.6 (billions and 23.2 feesportfolio

  26. Slide 26: Consolidated results: segment and region

    Table of Contents Consolidated 4Q total before -0.7 22 used 2. Retail1 16.7 316.2 for Geographic income business 15.5 326.3 74.8 results: 0.9 taxes2 103.1 85.1 management information 1.7 Income Full -18.7 77.4 25.8year 80.3 24.9 Japan (loss) ispurposes. Quarter 116.6 based 25.5 234.7 before 31.3 51.

  27. Slide 27: Segment "Other"

    Table of Contents Segment economic -3.4 -40.2“Other” -7.3 Others -6.517.9 Income 0.869.7 -0.7(loss) 8.5 0.6 7.0 -8.0 before 6.4 1.753.7 income hedging 2.6 taxes Income transactions Full(loss) yearRealized before Quarterincome gain (billions (loss) taxes ofon yen) 37.6 investments 80.0 56.4 56.4 22.6

  28. Slide 28: Retail related data (1)

    Table of Contents Retail 21.7 -29.9% 309.8 0.0 2,975.3 Nomura 0.0 -14.6% 77.4 related 0.0 Investment 3,006.2 Securities 76.8 0.0 23.4% data 0.0 76.2 3,057.6 -(1) in trust Of -Stock 80.0 Thailand Full which, 3,094.5 administration 76.7 year investment commissions -4.1% and Quarter 1.2% BDO -0.9% 5.2%

  29. Slide 29: Retail related data (2)

    Table of Contents Retail FY2016/17 9.5 Philippines 9.1related Bondwere FY2017/18 investment dataincluded (2) Retail FY2016/17 trusts from client 7.3 December 7.1 assets1 FY2017/18 7.3 7.6 (trillions 31, 7.5 2017. Mar 7.9of Mar 2.7.1 yen) Including Foreign Mar 140Jun 122.8 CBs investment Sep Other an

  30. Slide 30: Retail related data (3)

    Table of Contents Retail related inflows minusdata outflows, (3) Netexcluding inflows of regional cash and financial securities1 institutions. Full year26Quarter (billions of yen) (billions of yen) 1,000 1,000 500 500 0 0 -78 -14 -43 -196 -306 -115 -403 -500 -500 FY2016/17 FY2017/18 FY2016/17 FY2017

  31. Slide 31: Retail related data (4)

    Table of Contents Retail Online of 2018 orders torelated service form 57%Online data 67% accounts1, (4) 57% Services Number 58% 2 4,456 which 60% of accounts 4,387 60% started 4,456 78%(thousands) providing Transaction 4,361 4,301 new FY2016/17 value services. 4,34234% 4,387 FY2017/18 Ratio 43% Newo

  32. Slide 32: Asset Management related data (1)

    Table of Contents Asset 2.2% 48.9 7.8 Square. 8.3 50.7 9.4% Management 8.4 2853.3 8.4 2. Income Net 52.4 8.3after 7.8 before related Nomura Assets deducting income data Funds under (1)duplications taxes Research Full management year 42.3 Quarter and 66.2 from (net) Technologies 8.7 assets FY2016/17

  33. Slide 33: Asset Management related data (2)

    Table of Contents Asset906 183 FY2016/17 12.3 (net).12.8 2. Management Source 193 13.4 FY2017/18 1,740 13.1 Investment Investment related 13.8Mar 12.3 data Trusts Mar Nomura advisory (2) Mar Association, Asset Jun Asset business inflows/outflows SepManagement Dec Japan. 584 Mar203 29Domestic 315 sha

  34. Slide 34: Wholesale related data

    Table of Contents Wholesale 167.2 352.1 715.3 10.3% 86.5 171.2related 95.7 179.3 16.9% 78.3 data 159.0 Income 79.4 Full 165.6 98.8 year before 24.6% 211.4 Quarter income 27.6% 14.3% (billions taxes 23.5% Equities 161.4 ofInvestment yen) 231.9 100.6 FY2016/17 261.2 28.1 Banking 57.0 25.4FY2017/18 58.

  35. Slide 35: Number of employees

    Table of Contents Number Asia andof Oceania1 employees 6,619 FY2016/17 6,810 6,619 FY2017/18 6,673 6,756 FY2016/17 6,786 6,810 FY2017/18 Total 28,186 Mar Mar 28,048 Mar28,186 Jun Sep 28,914 Dec Mar 28,857 Japan 28,772 16,227 28,048 15,819 31 16,227 Includes16,903 Powai16,706 office in 16,583 India.1

  36. Slide 36: Disclaimer

    Table of Contents Disclaimer affiliate regulations, implied, unless document read all (http://www.nomura.com) investor are unaudited. of inherently made, inthe otherwise the thereof. sentiments, are following and contains context This rules made uncertain Nomura document Offers indicated. and that o

  37. Slide 37: Nomura Holdings, Inc. www.nomura.com

    Table of Contents Nomura Holdings, Inc. www.nomura.com

Nomura Holdings — Q4 FY2017/18 Earnings Presentation on 6ix